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- calendar_today November 11, 2026
SpaceX Sets Plans for Massive Data Center Investment Near Brownsville
SpaceX is moving forward with a $24 billion project encompassing a data center and gas-fired power plant near Brownsville, Texas. The site, now within Starbase city limits, sits on 444.45 acres of land that Brownsville de-annexed earlier this year at SpaceX's request. This strategic move allows the project to sidestep Brownsville’s new data center moratorium, which took effect last week.
De-Annexation Deal Paves Way for SpaceX Facility
The de-annexation of the property was agreed upon after SpaceX offered to fund $220 million in water and wastewater infrastructure for Brownsville. The deal, which required swift approval, was met with mixed reactions, drawing both condemnation from environmental advocates and support from some residents. Environmentalists were concerned about the increasing presence of SpaceX in the region, while supporters cited job creation and rising property values as positives since SpaceX’s arrival.
Tax Breaks and Future Expansions on the Table
On Monday, Starbase city officials notified the public that a public hearing will take place in December to consider tax breaks for the development. The $24 billion investment covers initial construction and could include future expansions of the data center and power plant.
Project Aims to Avoid Data Center Moratorium Restrictions
Brownsville enacted a 90-day moratorium on data center applications within its jurisdiction last week, reflecting a broader statewide trend of skepticism toward data centers. The city cited high energy consumption, water use, and potential strains on municipal resources as reasons for the temporary pause. Had the land remained under Brownsville’s jurisdiction, the SpaceX project would likely have faced significant hurdles due to these new restrictions.
Statewide Pushback on Data Center Construction
Across Texas, opposition to data center construction has mounted due to concerns over their power and water needs. Recent polling shows a majority of Texans oppose new data center projects. In response to growing criticism, several communities have issued temporary bans on new construction, and Governor Greg Abbott has instructed operators of the state’s power grid to halt new data center connections pending further audits. Abbott also directed the Texas Commission on Environmental Quality to stop issuing data center permits, though some have continued through the process.
SpaceX's Strategy: Independent Power Supply
The planned gas-fired power plant will supply energy directly to the SpaceX data center, allowing the company to operate independently of the state’s power grid and avoid certain regulatory challenges. This approach is significant, as not all centers are able to function off the grid, giving SpaceX an operational advantage under current statewide restrictions.
Community Reactions: Support and Concern
The announcement elicited varied responses from local stakeholders. The South Texas Environmental Justice Network organized protests, voicing fears over air pollution, increased water usage, and higher energy bills. Conversely, some residents welcomed the project, citing job creation and positive impacts on property values. Brownsville resident and teacher Janie Melendez praised the jobs SpaceX brings and noted a substantial increase in her home’s value since the company’s arrival.
Brownsville Officials Address Infrastructure and Growth
In a public statement, Brownsville officials stood by their decision to approve the de-annexation, pointing to the city’s need for infrastructure funding and long-term benefits. The city stated that the $220 million from SpaceX will be directed toward water infrastructure to sustain future growth. Brownsville assured residents that all future de-annexation requests will be independently reviewed to ensure responsible development, emphasizing transparency and accountability in decision-making.
Outlook for Data Centers in Texas
Political momentum against data centers is expected to continue. Governor-elect Gina Hinojosa has stated she plans to halt all data center approvals until legislators pass more protective laws. As Texas debates the balance between economic development and resource management, projects like SpaceX’s in Starbase highlight the complex interplay of local interests, state policy, and private investment.
Related coverage
Source: feeds.texastribune.org.
